The Hindu Business Line : Russia’s Sistema to invest $4-7 b in telecom sector

New Delhi, Feb. 13 Russian conglomerate Sistema is looking at investing $4-7 billion in India’s telecom sector to create a world-class telecom network, besides raising its stake in Shyam Telelink to 74 per cent in next one-two years.

“We will invest $4-7 billion in the Indian telecom space,” Sistema President and CEO Mr Alexander Goncharuk told reporters here.

He added that the company would also increase its stake in the Indian telecom player Shyam Telelink to 74 per cent in the next one-two years from the current 51 per cent.

Investment in Shyam

Shyam Telelink has got Letters of Intent for 22 circles on January 10 and is all set to get the spectrum to start rolling out mobile services network.

Mr Goncharuk said that the amount of investment would also depend on the spectrum it gets from the Government.

“The Indian market is very attractive and competitive. We have to implement different models here.

The average revenue per user of Indian operators is lower than that of Russian service providers and Sistema would address such issues accordingly,” he added. Sistema has already committed $1 billion investment for its plans in Shyam Telelink.

The company is the largest mobile operator in Russia, ranking seventh in the world, and has over 81 million wireless subscribers.

The company also plans to foray into the real estate business in India. “We have just started discussions with various players in the real estate business. We may also look to rope in a local partner,” Mr Goncharuk said. He, however, refused to give any further details.

Sistema has also set up its office in New Delhi, which was inaugurated on Tuesday by the Russian Prime Minister, Mr Victor Zubkov.

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